Special Scheme for Coal Mining Workers
Régimen Especial de la Minería del Carbón
Coverage
Mandatory insurance
- Employed persons engaged in activities related to coal mining.
Voluntary insurance
- No possibilities for voluntary insurance in this scheme.
Financing
General finances
- It is PAYG-financed from social security contributions paid by employers and employees.
- There is no specific contribution for old age pensions. Retirement falls within the legal concept of common contingencies together with other social risks.
Contribution rates
- Fixed share of monthly gross earnings (28.3%) with minimum and maximum contribution base ceilings.
- Contributions are shared between employer (23.6%) and employees (4.7%).
- The contribution bases for common contingencies are standardised by calendar year for each category, occupational group and occupational speciality within the territorial limit of the mining areas.
Taxation of contribution payments
- Social contributions are deductible expenses from the Personal Income Tax.
Administration
- The ‘National Social Security Institute’ (Instituto Nacional de la Seguridad Social, INSS) manages the scheme.
Qualifying Conditions
Qualifying conditions
- The standard retirement age for the general scheme is reduced by applying a reduction coefficient (a scale ranging from 0.50 to 0.05) depending on the danger and toxicity of the specific activity carried out, the worker´s occupational category and the length of time he/she has worked in it.
- The period of time in which the worker's retirement age is lowered will be computed as a period of contributions in order to increase the percentage of pension benefits for years of contribution.
Early retirement
- Early retirement due to membership in a mutual society (Mutualismo Laboral) from the age of 60 is possible with negative (permanent) adjustments to pension benefits (same conditions as in the general scheme).
Deferred retirement
- Retirement can be voluntarily deferred beyond the standard retirement age, on a full-time or part-time basis, after a minimum contribution period (37 years or more for persons aged 65, or less than 37 years of contribution for persons aged 65 and 10 months) has been completed and with special contribution considerations (contribution only for occupational risks and for temporary incapacity to work); with positive (permanent) adjustments to pension benefits (additional percentage for each full year of contributions: 2% up to 25 years of contribution, 2.75% between 25 and 37 years, and 4% as of 37 years).
Combining employment & retirement
- Termination of employment is not a precondition for claiming pension benefits.
- Partial retirement and flexible retirement are possible under the same conditions as in the general scheme.
Benefits
Pension benefits
- Benefits are based on the same conditions as specified in the general scheme.
Benefit calculation
- Same as in the general scheme.
Taxation and social security contributions
- Pension benefits are subject to tax according to the rules applicable to income from work.
- Pension benefits are not subject to social contributions.
- In cases of compatibility of pension and work, there is a special solidarity contribution of 9% of the contribution base for common contingencies.
Coverage
Financing
Administration
Qualifying Conditions
Benefits
Mandatory insurance
- Employed persons engaged in activities related to coal mining.
Voluntary insurance
- No possibilities for voluntary insurance in this scheme.
General finances
- It is PAYG-financed from social security contributions paid by employers and employees.
- There is no specific contribution for old age pensions. Retirement falls within the legal concept of common contingencies together with other social risks.
Contribution rates
- Fixed share of monthly gross earnings (28.3%) with minimum and maximum contribution base ceilings.
- Contributions are shared between employer (23.6%) and employees (4.7%).
- The contribution bases for common contingencies are standardised by calendar year for each category, occupational group and occupational speciality within the territorial limit of the mining areas.
Taxation of contribution payments
- Social contributions are deductible expenses from the Personal Income Tax.
- The ‘National Social Security Institute’ (Instituto Nacional de la Seguridad Social, INSS) manages the scheme.
Qualifying conditions
- The standard retirement age for the general scheme is reduced by applying a reduction coefficient (a scale ranging from 0.50 to 0.05) depending on the danger and toxicity of the specific activity carried out, the worker´s occupational category and the length of time he/she has worked in it.
- The period of time in which the worker's retirement age is lowered will be computed as a period of contributions in order to increase the percentage of pension benefits for years of contribution.
Early retirement
- Early retirement due to membership in a mutual society (Mutualismo Laboral) from the age of 60 is possible with negative (permanent) adjustments to pension benefits (same conditions as in the general scheme).
Deferred retirement
- Retirement can be voluntarily deferred beyond the standard retirement age, on a full-time or part-time basis, after a minimum contribution period (37 years or more for persons aged 65, or less than 37 years of contribution for persons aged 65 and 10 months) has been completed and with special contribution considerations (contribution only for occupational risks and for temporary incapacity to work); with positive (permanent) adjustments to pension benefits (additional percentage for each full year of contributions: 2% up to 25 years of contribution, 2.75% between 25 and 37 years, and 4% as of 37 years).
Combining employment & retirement
- Termination of employment is not a precondition for claiming pension benefits.
- Partial retirement and flexible retirement are possible under the same conditions as in the general scheme.
Pension benefits
- Benefits are based on the same conditions as specified in the general scheme.
Benefit calculation
- Same as in the general scheme.
Taxation and social security contributions
- Pension benefits are subject to tax according to the rules applicable to income from work.
- Pension benefits are not subject to social contributions.
- In cases of compatibility of pension and work, there is a special solidarity contribution of 9% of the contribution base for common contingencies.
Legal Basis: Decree 298/1973 of 8 February on updating the Special Social Security Scheme for Coal Mining Workers (Decreto 298/1973, de 8 de febrero, sobre actualización del Régimen Especial de la Seguridad Social para la Minería del Carbón).